Quarterly report pursuant to Section 13 or 15(d)

Impairment, Restructuring and Other Costs

v3.21.2
Impairment, Restructuring and Other Costs
6 Months Ended
Jul. 31, 2021
Restructuring Costs And Asset Impairment Charges [Abstract]  
Impairment, Restructuring and Other Costs

2.

Impairment, Restructuring and Other Costs

 

 

 

13 Weeks Ended

 

 

26 Weeks Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

July 31, 2021

 

 

August 1, 2020

 

 

 

(millions)

 

Impairments

 

$

2

 

 

$

15

 

 

$

20

 

 

$

3,164

 

Restructuring

 

 

 

 

 

169

 

 

 

(1

)

 

 

194

 

Other

 

 

 

 

 

58

 

 

 

2

 

 

 

68

 

Total

 

$

2

 

 

$

242

 

 

$

21

 

 

$

3,426

 

 

During the 13 and 26 weeks ended July 31, 2021, the Company incurred non-cash impairment charges totaling $2 million and $20 million, respectively, primarily related to capitalized software assets.

 

During the 13 and 26 weeks ended August 1, 2020, primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $15 million and $3,164 million, respectively, the majority of which consisted of:

 

$3,080 million of goodwill impairments, with $2,982 million attributable to the Macy's reporting unit and $98 million attributable to the bluemercury reporting unit.

 

$80 million of impairments primarily related to long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value.  

A summary of the restructuring and other cash activity for the 13 and 26 weeks ended July 31, 2021 and August 1, 2020 related to the Polaris strategy, which was announced in February 2020 and included within accounts payable and accrued liabilities, is as follows:

 

 

 

Severance and

other benefits

 

 

Professional

fees and other

related charges

 

 

Total

 

 

 

(millions)

 

Balance at February 1, 2020

 

$

115

 

 

$

9

 

 

$

124

 

Additions charged to expense

 

 

25

 

 

 

7

 

 

 

32

 

Cash payments

 

 

(82

)

 

 

(6

)

 

 

(88

)

Balance at May 2, 2020

 

 

58

 

 

 

10

 

 

 

68

 

Additions charged to expense

 

 

15

 

 

 

6

 

 

 

21

 

Cash payments

 

 

(67

)

 

 

(6

)

 

 

(73

)

Balance at August 1, 2020

 

$

6

 

 

$

10

 

 

$

16

 

 

 

 

 

Severance and

other benefits

 

 

Professional

fees and other

related charges

 

 

Total

 

 

 

(millions)

 

Balance at January 30, 2021

 

$

14

 

 

$

2

 

 

$

16

 

Additions charged to expense

 

 

5

 

 

 

 

 

 

5

 

Cash payments

 

 

(16

)

 

 

(2

)

 

 

(18

)

Balance at May 1, 2021

 

 

3

 

 

 

 

 

 

3

 

Additions charged to expense

 

 

 

 

 

 

 

 

 

Cash payments

 

 

(1

)

 

 

 

 

 

(1

)

Balance at July 31, 2021

 

$

2

 

 

$

 

 

$

2